One of the main Brazilian real estate groups will start accepting payments in Bitcoin, following the path recently started by other major groups in Europe and the United States. The transactions will allow buyers to cover the entire value of the properties without the need to use fiat currency.
The real estate company thus will seek to maximize profits by leveraging the speed and security of the blockchain, but will also try to attract foreign buyers through this move. And this actually anticipates the moves of a government that has already shown more than one sign of openness towards cryptocurrencies.
In fact, Gafisa—one of the most important real estate groups in Brazil—recently announced its openness to cryptocurrencies. Customers will be able to buy a house by paying in Bitcoin, without having to use fiat currency.
Before the purchase, interested parties will have to sign a letter of intent to allow the company to carry out all the necessary checks. If the outcome is positive, it will be possible to conclude the operation with a simple transaction using cryptocurrencies.
“Bitcoin is the largest cryptocurrency by market capitalization and is growing in popularity every day, also expanding the possibilities of its use. There is a natural tendency to digitize payments. If we stop to think that the Central Bank will launch the digital real in 2022, we can conclude that, in fact, digital currencies are increasingly present in the world”.
From the words of Gafisa Incorporadora and Construtora’s CEO Guilherme Augusto Soares Benevides, it is not difficult to grasp how much, in the Carioca country, the turmoil around cryptocurrencies and above all their effective use in everyday life has now grown to the point of pushing the government towards a concrete regulatory plan.
The work already seems to be at a good point: starting next year, Rio de Janeiro will begin to accept cryptocurrencies for the payment of local taxes. In the meantime, the central government is actively working to regulate in this regard: the work already started in the Senate, making the carioca country the locomotive of the crypto turning point in South America.
This is not the first time that a country explores potential uses for cryptocurrencies in the real estate market. Quite recently the first Bitcoin transaction to purchase a house took place in Portugal.
And while in Europe these situations are increasingly frequent, the U.S is certainly keeping up with the old continent. Kentucky’s first real estate sale in Bitcoin materialized within days of the Portuguese one.
Going further back in time, the fintech company Milo started experimenting with Bitcoin mortgages, pioneering a path that will probably move a substantial portion of a business that until recently was the exclusive prerogative of banks from traditional finance to DeFi.
Innovations like this are very important to build a solid crypto ecosystem and drive mass adoption while innovating in important sectors such as real estate. It is very likely that other countries will follow the example in the upcoming years.
Let’s also not forget that Brazil itself is working to create infrastructure for a CBDC. But will this be worth it if we have such good alternatives as Bitcoin? Time (and market) will probably tell.